Last year at this time media channels were flooded with news of the next currency that could revolutionize global trade. Everyone was talking about it and I felt the need to join the party. Nearly a year ago, to this day, I wrote a blog about Bitcoins and their potential to become the currency of the future. At the beginning of this year, one Bitcoin was worth approximately $800 U.S. Dollars. As of Monday, a Bitcoin is worth approximately $320 U.S. Dollars.
Throughout 2014, the crypto currency has struggled. Negative headlines have pushed Bitcoin's value down and made the average consumer less trusting of the radical idea. Consumers were already skeptical and that skepticism grew in January when Charlie Shrem, the CEO of BitInstant, was arrested for money laundering. Bitcoin's image was further damaged in June when Mt. Gox, the most widely used Bitcoin exchange, announced that it had lost nearly half a billion dollars' worth of the currency.
Bitcoin isn't in the news as much as it was a year ago and the 60% decline in value symbolizes consumer distrust and doubt. While it still has the potential to revolutionize global trade, in my opinion, consumers will continue take comfort in the greenbacks in their pockets rather than a virtual wallet on their computer.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).